Mortgage rates in the U.S. increased slightly, following positive housing news on housing starts and building permits, and the policy announcement from the Federal Reserve, according to Freddie Mac.
The 30-year fixed-rate mortgage averaged 4.47 percent this week, increasing from 4.42 percent last week. At this time last year, the average was 3.37 percent.
Mortgage rates increased slightly leading up to the Federal Reserve's announcement to begin trimming its bond buying program and start tapering off the stimulus package for the housing industry.
Frank Nothaft "The Fed noted that the economy expanded at a modest pace, but the unemployment rate remains elevated," Frank Nothaft, vice president and chief economist, Freddie Mac, said in the report. "In addition, housing starts in November rose to a seasonally adjusted annual rate of 1,091,000, the highest rate since February 2008. Permits were at a seasonally adjusted annual rate of 1,007,000 in November, 7.9 percent higher than in November 2012."
The 15-year fixed-rate mortgage averaged 3.51 percent this week, increased from 3.43 percent last week. Last year at this time it was 2.65 percent.
The one-year treasury-indexed ARM averages 2.57 percent this week, up from 2.51 percent last week.
If you are thinking about upsizing or down sizing or first time buying a home, now will be the best time to make this happen. The home you are looking to buy will also increase in price over the next 12 months.